INSURANCE AGREEMENT
$800,000,000
Capital One Auto Finance Trust 2002-C
Asset Backed Notes, Series 2002-C
Class A-1 Notes, Class A-2 Notes,
Class A-3-A Notes, Class A-3-B Notes and Class A-4 Notes
Dated as of December 17, 2002
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TABLE OF CONTENTS
Page
ARTICLE I
DEFINITIONS........................................................................1
ARTICLE II
REPRESENTATIONS, WARRANTIES AND COVENANTS
Section 2.01. Representation and Warranties of the COAF Companies................9
Section 2.02. Affirmative Covenants of the COAF Companies.......................12
Section 2.03. Negative Covenants of the COAF Companies..........................18
Section 2.04. Representation and Covenants of Indenture Trustee.................19
Section 2.05. Representations, Warranties and Covenants of the Owner Trustee....19
ARTICLE III
THE POLICIES; REIMBURSEMENT
Section 3.01. Issuance of the Policies..........................................20
Section 3.02. Payment of Fees and Premium.......................................22
Section 3.03. Reimbursement and Additional Payment Obligation...................23
Section 3.04. Indemnification; Limitation of Liability..........................25
Section 3.05. Payment Procedure.................................................26
Section 3.06. Reimbursement.....................................................27
ARTICLE IV
FURTHER AGREEMENTS
Section 4.01. Effective Date; Term of the Insurance Agreement...................27
Section 4.02. Further Assurances and Corrective Instruments.....................27
Section 4.03. Obligations Absolute..............................................27
Section 4.04. Assignments; Reinsurance; Third-party Rights......................29
Section 4.05. Liability of the Note Insurer.....................................29
Section 4.06. No Proceedings....................................................30
Section 4.07. Parties To Join in Enforcement Action.............................30
ARTICLE V
DEFAULTS; REMEDIES
Section 5.01. Defaults..........................................................31
Section 5.02. Remedies; No Remedy Exclusive.....................................31
Section 5.03. Waivers...........................................................32
ARTICLE VI
MISCELLANEOUS
Section 6.01. Amendments, Etc...................................................33
Section 6.02. Notices...........................................................33
Section 6.03. Severability......................................................35
Section 6.04. Governing Law.....................................................35
Section 6.05. Consent to Jurisdiction...........................................35
Section 6.06. Consent of the Note Insurer.......................................36
Section 6.07. Counterparts......................................................36
Section 6.08. Headings..........................................................36
Section 6.09. Trial by Jury Waived..............................................36
Section 6.10. Limited Liability.................................................36
Section 6.11. Entire Agreement..................................................36
Section 6.12. Limitation of Liability...........................................36
TESTIMONIUM
SIGNATURES
ii
INSURANCE AGREEMENT
This INSURANCE AGREEMENT (this "Insurance Agreement") is dated as of December
17, 2002 by and among MBIA INSURANCE CORPORATION (the "Note Insurer"), CAPITAL
ONE AUTO FINANCE, INC., in its individual capacity and as the Servicer (the
"Servicer"), CAPITAL ONE AUTO FINANCE, INC., as Transferor (the "Transferor"),
CAPITAL ONE AUTO RECEIVABLES, LLC, as Seller (the "Seller"), WILMINGTON TRUST
COMPANY, not in its individual capacity but solely in its capacity as owner
trustee for Capital One Auto Finance Trust 2002-C (the "Owner Trustee") and
JPMORGAN CHASE BANK in its capacity as indenture trustee (the "Indenture
Trustee").
WHEREAS, the Indenture Trustee is authenticating $800,000,000 principal
amount of the Capital One Auto Finance Trust 2002-C, Asset Backed Notes, Series
2002-C, Class A-1 Notes, Class A-2 Notes, Class A-3-A Notes, Class A-3-B Notes
and Class A-4 Notes, pursuant to an Indenture as more specifically defined
below. The Notes will be secured by the Trust Property as defined in the
Indenture;
WHEREAS, the Owner Trustee, Seller, Transferor and Servicer have requested
that the Note Insurer issue its Note Guaranty Insurance Policy (the "Note
Policy") to guarantee payment of Insured Payments (as defined in Note Policy)
with respect to the Class A Notes, upon such terms and conditions as were
mutually agreed upon by the parties and subject to the terms and conditions of
the Note Policy and has asked the Note Insurer to issue an Interest Rate Swap
Policy (the "Swap Policy") and together with the Note Policy, the "Policies")
and the Note Insurer has agreed to insure certain amounts which may be due from
the Owner Trustee on behalf of Capital One Auto Finance Trust 2002-C (the
"Issuer") to the Swap Provider under the Swap Agreement;
WHEREAS, the parties hereto desire to specify the conditions precedent to
the issuance of the Policies by the Note Insurer, the indemnity and
reimbursement to be provided by the Transferor and the Servicer in respect of
amounts paid by the Note Insurer under the Policies and to provide for certain
other matters;
WHEREAS, the Note Insurer shall be paid an insurance premium pursuant to
the Indenture, and the details of such premium are set forth herein; and
WHEREAS, each COAF Company (as defined below) has undertaken certain
obligations in consideration for the Note Insurer's issuance of the Policies;
NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
The terms defined in this Article I shall have the meanings provided herein
for all purposes of this Insurance Agreement, unless the context clearly
requires otherwise, in both singular and plural form, as appropriate. Unless the